In 2023, four years after legalization, cannabis dispensaries in Toronto made an economic profit of -$15,000 on average. As a result, we expect ____________in the following year(s). Question 3 Select one: A. some of the dispensaries in Toronto to close B. all of the dispensaries in Toronto to close C. tax revenue from dispensaries in Toronto to increase D. some new dispensaries in Toronto to open E. the number of dispensaries in Toronto to stay the same
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- Which of the following is TRUE about the pharmaceutical industry? a. In the United States drug companies can receive a patent of 100 years for each drug they develop b. Lowering the length of patents could induce greater innovation and new drug development. c. Raising the length of patents would lower profits of pharmaceutical companies d. Price controls in other countries make existing drugs more affordable overseas but they decrease the overall rate of innovation for new drugs.1. A U.S. patent for the drug that most effectively treats HIV prevents other drug companies from producing a comparable substitute for patients. a. What is the effect of patent protection on the demand for a drug? How does the shape of the demand curve differ before and after a patent has expired? Support your explanation with a graph. b.Demand curves respond to preferences, income, and costs of substitute and complements. Discuss how these factors determine a country’s demand for HIV treatments. How might the effects of the patent protection differ across countries?A monopolist is faced with the following cost and revenue curves:(picture) a.What is the maximum-profit price and output,total revenue, total cost and profit? b.If the monopolist were ordered to produce 300 units, what would be the market price and how much profit would now be made c.If the monopolist were faced with the same demand, but average costs were constant at £60 per unit, what output would maximise profit? What would be the price now?................................................................................................. (j) How much profit would now be made? ................................................................................... (k) Assume now that the monopolist decides not to maximise profits, but instead sets a price of £40. How much will now be sold? .................................................................................................................................................. (l) What is the marginal revenue at this…
- Why are price controls a bad idea for the government to place on pharmaceutical companies? (explain what a price control is and how the government would use it on pharmaceutical company drugs) Using Pharmaceutical Revenues please explain the push supply or pull demand strategies used to increase sales. How can a pharmaceutical company become a monopoly for a product or a drug? What are the benefits for the company and the economy as a whole? What are some of the drawbacks?(Table: Demand for Cappuccinos at Charlie's Crazy Cappuccino House) Use Table: Demand for Cappuccinos at Charlie's Crazy Cappuccino House. Charlie's Crazy Cappuccino House is the only source of cappuccinos for hundreds of miles in any direction. Assume Charlie's marginal cost of selling cappuccinos is constant at $2 and that he has no fixed costs. If the government forces Charlie to charge a price that eliminates deadweight loss, Charlie will charge cups. per cup and sell Table: Demand for Cappuccinos at Charlie's Crazy Cappuccino House Price of Cappuccinos (per cup) $10 9 8 7 6 5 4 3 2 1 0 $0; 10 $2;8 $4; 6 $5; 5 Quantity of Cappuccinos (daily cups) 0 1 2 3 4 5 7 8 9 102. Acme Pharmaceutical Company discovers a vaccine that prevents the common cold and has a patent that grants it a monopoly on this drug. Acme has plants in both the North America and Europe and can manufacture the drug on either continent at a marginal cost of $10. Assume there are no fixed costs. In Europe, the demand for the drug is QE = 70 PE, where QE is the quantity demanded when the price in Europe is PE. In North America the demand for the drug is QN = 110 - PN, where QN is the quantity demanded when the price in North America is PN (a) Determine the aggregate demand function for the combined mar- ket. Determine the inverse demand function for the combined market and the inverse demand functions for each of the two mar- kets separately. (b) To begin, assume that it is illegal for the firm to price discriminate, so that it can charge only a single price P on both continents. What price will it charge, and what profits will it earn?
- media economics course Question #1: A lot of media regulation is geared towards areas such as content (protecting children) and ownership. Why are these two areas so important, and how do they differ around the globe? Question #2: What is censorship, and why do some governments openly engage in censorship involving the media industries? In what ways will this continue to play a role in media and economics? Question #3: The Internet has raised a number of legal issues since its development. One hot issue in the 21st century is that of net neutrality. What is net neutrality, and what are the two main opposing views on the topic? Where do you stand on the subject of net neutrality? Question #4: What's the role of advertising in today's media economics? What are some policies involving advertising within the media landscape, especially within economics? Question #5: Define content regulation and its role in today's media economics? In what ways will content regulation shape the media…Question 4: The main criticism that economists have about monopolies is that a monopoly produces too little output and charges too high a price compared to a competitive market. The chart below shows a hypothetical monopoly's Marginal Cost (MC) and Marginal Revenue (MR) curves as well as the market demand (D) curve. AC MC 100 75 50 100 200 a) What is the quantity produced and price paid in this market if the monopoly seeks to maximize profits? (B) What will be the profits made by the monopoly in this situation? (C) Where do economists say would be the socially optimal level of production?| (D) instead of producing at the level that maximizes social welfare? Calculate the deadweight loss if the monopoly produces where it maximizes total profitsWhat is the rationale for FDA regulation of drugs? To protect the consumer from dangerous drugs Because physicians may not be knowledgeable about all the new drugs in the market Both a and b Neither a nor b
- Question 4: Monopolists, Competition & Externalities The production of electricity creates a lot of pollution. Whether coal or natural gas is being burned to create electric power, there are severe negative externalities from the production and consumption of energy. 1. Will the price of electricity be higher or lower if it is produced by a single monopolist rather than in a perfectly competitive industry? Why? 2. Will the quantity of electricity consumed be higher or lower if it is produced by a single monopolist rather than in a perfectly competitive industry? Why? 3. Will the total negative externality caused by pollution created in the production and provision of electricity be higher or lower if electricity is produced by a single monopolist rather than in a perfectly competitive industry? Why? 4. Is Total Surplus (that is, Consumer Surplus plus Producer Surplus) higher or lower if electricity is produced by a single monopolist rather than in a perfectly competitive industry? Why?…Refer to Case 5: New Belgium Brewing: Ethical and Environmental Responsibility You are asked to provide advice for an organic cigarette firm. The firm wants to market the sustainability of its products, including the fact that all the tobacco has been grown with sustainable farming methods. This does not make the cigarettes any safer. Is this situation the same as that faced by New Belgium Brewing? How would you advise the firm and help it to maintain its responsibilities to consumers regarding the dangers of smoking? Be sure to address: The environmental issues faced The organization’s social responsibility How sustainability affects or contributes to the organizational ethics.Question 13 The table below presents the demand schedule and marginal costs facing a monopolist producer. Copy and paste the table into the answer area. Then complete all questions. a. Fill in the total revenue and marginal revenue columns. b. What is the profit-maximizing level of output? ( c. What price will the monopolist charge for the quantity in part b? ( Price ($) 12 11 10 9 8 7 6 Quantity 0 1 2 3 4 5 6 7 8 9 10 For the toolbar, press ALT F10 (PC) or ALT+FN+F10 (Mac). 5 4 3 2 Total Revenue ($) Marginal Revenue ($) Marginal Cost (5) 3 3 3 3 3 3 3 3 3 3